Energy prices likely to rise again this winter!

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Last week the Bank of England predicted that energy prices are likely to rise again this winter.

It seems they were right on the money: SSE (the UK's second biggest energy supplier) on Wednesday announced a 9% price hike from 15 October.

And history tells us that when one of the "Big Six" energy suppliers raises prices, it's only a matter of time before the others do the same...

The Bank of England's quarterly inflation report, released on 12 August, revealed that although wholesale gas prices have fallen by roughly 9% since May's report, retail energy prices may still go up towards the end of 2012.

The Bank says that "continuing rises in the other costs that those suppliers face, such as those associated with distribution, are likely to result in small increases in domestic energy prices around the turn of the year."

Fixed energy tariffs aren't without downsides though. If you want to leave the tariff, before the end of the fixed period, you will sometimes have to pay a penalty to exit. This can also be the case with some of the best online variable tariffs as well. So make sure you check the cancellation penalty before you make your switch.

What you can do if your energy supplier raises prices

E.ON has pledged not to increase its prices in 2012, meaning that customers with this company have some security. However, if its competitors do increase prices, history says that E.ON would be almost certain to do the same early in 2013.

When your energy provider increases its prices, you have the right to reject the price rise – providing you switch to a new energy company. You have to contact your energy provider within 20 working days to inform them of your rejection, and, obviously, you'll also need to arrange a new supplier as well.

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